Tom Peters

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Tom Peters Re-Imagine!Business Excellence
in a Disruptive AgeThe Donnelley
Group/infoUSA5th Annual Information Privacy
Forum Aspen/08July2005
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I dont intend to be known as the King of the
Tinkerers. CEO, large financial services
company
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Conference Time Out Is not about picking up
tips on data base privacy issuesIs about
re-imagining marketing and the idea of a
truly/no-bull customer-centric enterprise(Might
be about Gasp-worthy game-changing
breakthroughs)
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Companies have defined so much best practice
that they are now more or less identical.
Jesper Kunde, Unique Now ... or Never
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Conference Time Out Is not about picking up
tips on data base privacy issuesIs about
re-imagining marketing and the idea of a
truly/no-bull customer-centric enterprise(Might
be about Gasp-worthy game-changing
breakthroughs)
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Beware of the tyranny of making Small Changes to
Small Things. Rather, make Big Changes to Big
Things. Roger Enrico, former Chairman, PepsiCo
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Slides at tompeters.com
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China!
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China!
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China!
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China
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Chi
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Re-imagine! Not Your Fathers World I.
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26m
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43h
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2007 CgtE
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1 Houston/Month
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THREE BILLION NEW CAPITALISTS Clyde Prestowitz
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Re-imagine! Not Your Fathers World II.
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There is no job that is Americas God-given
right anymore. Carly Fiorina
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Re-imagine! Not Your Fathers World III.
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This is a dangerous world and it is going to
become more dangerous.We may not be
interested in chaos but chaos is interested in
us.Source Robert Cooper, The Breaking of
Nations Order and Chaos in the Twenty-first
Century
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Re-imagine! Not Your Fathers World IV.
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SuccessStrategy.2005
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SuccessStrategy.2005Rule 1 Never
compete against China on cost or WalMart on
price.Rule 2 See Rule 1
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A focus on cost-cutting and efficiency has
helped many organizations weather the downturn,
but this approach will ultimately render them
obsolete. Only the constant pursuit of innovation
can ensure long-term success. Daniel Muzyka,
Dean, Sauder School of Business, Univ of British
Columbia (FT/09.17.04)
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Guiding Tenets/Daily FareInnovate!Re-imagine!A
dapt!Prepare!
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1. Re-imagine Permanence The Emperor Has No
Clothes! (The Emperor Is an Idiot.)
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Forbes100 from 1917 to 1987 39 members of the
Class of 17 were alive in 87 18 in 87 F100
18 F100 survivors underperformed the market by
20 just 2 (2), GE Kodak, outperformed the
market 1917 to 1987.SP 500 from 1957 to 1997
74 members of the Class of 57 were alive in 97
12 (2.4) of 500 outperformed the market from
1957 to 1997.Source Dick Foster Sarah
Kaplan, Creative Destruction Why Companies That
Are Built to Last Underperform the Market
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I am often asked by would-be entrepreneurs
seeking escape from life within huge corporate
structures, How do I build a small firm for
myself? The answer seems obvious Buy a very
large one and just wait. Paul Ormerod, Why Most
Things Fail Evolution, Extinction and Economics
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I dont believe in economies of scale. You dont
get better by being bigger. You get worse. Dick
Kovacevich/Wells Fargo/Forbes08.2004 (ROA
Wells, 1.7 Citi, 1.5 BofA, 1.3 J.P. Morgan
Chase, 0.9)
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Big Company Marketing Tip of the WeekWant
to increase sales overnight? Give away the
product!Thank you, General Motors!
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2. Re-imagine Four (Count em) Guaranteed
Answers!
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Innovate!
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Re-imagine General ElectricWelch was to a
large degree a growth by acquisition man. In
the late 90s, Immelt says, we became business
traders, not business growers. Today organic
growth is absolutely the biggest task of
everyone of our companies. If we dont hit our
organic growth targets, people are not going to
get paid. Immelt has staked GEs future
growth on the force that guided the company at
its birth and for much of its history
breathtaking, mind-blowing, world-rattling
technological innovation. GE Sees the
Light/Business 2.0/July 2004
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Innovation! NOTImitation
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To grow, companies need to break out of a
vicious cycle of competitive benchmarking and
imitation. W. Chan Kim Renée Mauborgne,
Think for Yourself Stop Copying a Rival,
Financial Times/08.11.03
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This is an essay about what it takes to create
and sell something remarkable. It is a plea for
originality, passion, guts and daring. You cant
be remarkable by following someone else whos
remarkable. One way to figure out a theory is to
look at whats working in the real world and
determine what the successes have in common. But
what could the Four Seasons and Motel 6 possibly
have in common? Or Neiman-Marcus and WalMart? Or
Nokia (bringing out new hardware every 30 days or
so) and Nintendo (marketing the same Game Boy 14
years in a row)? Its like trying to drive
looking in the rearview mirror. The thing that
all these companies have in common is that they
have nothing in common. They are outliers.
Theyre on the fringes. Superfast or superslow.
Very exclusive or very cheap. Extremely big or
extremely small. The reason its so hard to
follow the leader is this The leader is the
leader precisely because he did something
remarkable. And that remarkable thing is now
takenso its no longer remarkable when you
decide to do it. Seth Godin, Fast
Company/02.2003
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Innovation Index How many of your Top 5
Strategic Initiatives/Key Projects score 8 or
higher (out of 10) on a Weirdness/Profundity/
Game-changer Scale?
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Find Freaks!Talent
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The top software developers are more
productive than average software developers not
by a factor of 10X or 100X, or even 1,000X, but
10,000X. Nathan Myhrvold, former Chief
Scientist, Microsoft
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Why Do I love
Freaks? (1) Because when Anything Interesting
happens it was a freak who did it. (Period.)
(2) Freaks are fun. (Freaks are also a pain.)
(Freaks are never boring.) (3) We need freaks.
Especially in freaky times. (Hint These are
freaky times, for you me the CIA the Army
Avon.) (4) A critical mass of
freaks-in-our-midst automatically make
us-who-are-not-so-freaky at least somewhat more
freaky. (Which is a Good Thing in freaky
timessee immediately above.) (5) Freaks are
the only (ONLY) ones who succeedas in, make it
into the history books. (6) Freaks keep us
from falling into ruts. (If we listen to them.)
(We seldom listen to them.) (Which is why most of
usand our organizationsare in ruts. Make that
chasms.)
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Focus!
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48 Hours0614 Morgan Stanley (de-merge?)0614
HP (de-centralize)0615 Viacom (de-merge)
Focus!
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Market Share, Anyone?
240 industries market-share leader is ROA
leader 29 of the time Profit / ROA
leaders aggressively weed out
customers who generate low returns (the
35/140 rule) Source Donald V.
Potter, Wall Street Journal
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Step 1 Buy a Mirror!
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The First step in a dramatic organizational
change program is obviousdramatic personal
change! LH/RG/??
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Every project we undertake starts with the same
question How can we do what has never been done
before? Stuart Hornery, Lend Lease
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This is the true joy of Life, the being used for
a purpose recognized by yourself as a mighty one
the being a force of Nature instead of a
feverish, selfish little clod of ailments and
grievances complaining that the world will not
devote itself to making you happy. GB Shaw/Man
and Superman
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To Be somebody or to Do somethingBOYD The
Fighter Pilot Who Changed the Art of War (Robert
Coram)
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All of our artistic and religious traditions
take equally great pains to inform us that we
must never mistake a good career for good work.
Life is a creative, intimate, unpredictable
conversation if it is nothing elseand our life
and our work are both the result of the way we
hold that passionate conversation. David Whyte,
Crossing the Unknown Sea Work as a Pilgrimage of
Identity
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Tell me, what is it you plan to do with your one
wild and precious life? Mary Oliver
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Listen to Kevin!
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Kevin Roberts Credo1. Ready.
Fire! Aim.2. If it aint broke ... Break it!3.
Hire crazies.4. Ask dumb questions.5. Pursue
failure.6. Lead, follow ... or get out of the
way!7. Spread confusion.8. Ditch your
office.9. Read odd stuff.10. Avoid moderation!
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3. Re-imagine Organizing I IS/IT as Game
Changer! (Or Why Bother?)
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We all live in Dell-WalMart-eBay-Google World!
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Power Tools for Power Solutions/ Strategies! TP
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3A. Re-imagine Organizing II The Power of
We(The Whole World Is Rocked.)
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THE POWER OF US Mass Collaboration on THE
INTERNET Is Shaking Up Business
Cover/BusinessWeek/06.20.05
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Skype 41M users, 150K/day a
self-sustaining phone system that requires no
central capital investmentjust the willingness
of its users to share (BW/06.05) Its almost
like an organism (Skype CEO Niklas Zennstrom)
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The nearly 1 billion people online
worldwidealong with their shared knowledge,
social contacts, online reputations, computing
power, and moreare rapidly becoming a collective
force of unprecedented power. For the first time
in human history, mass cooperation across time
and space is suddenly economical. BW/06.20.05
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Theres a fundamental shift in power happening.
Everywhere, people are getting together and,
using the Internet, disrupting whatever
activities theyre involved in. Pierre Omidyar,
founder, eBay
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Blogging made my year! TPPortal!Conversatio
ns!Collaboration!New value!
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Globalization1.0 Countries globalizing
(1492-1800)Globalization2.0 Companies
globalizing (1800-2000)Globalization3.0 (2000)
Individuals collaborating competing
globallySource Tom Friedman/The World Is Flat
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The corporation as we know it, which is now 120
years old, is not likely to survive the next 25
years. Legally and financially, yes, but not
structurally and economically.Peter Drucker,
Business 2.0
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3B. Re-imagine the Customer RelationshipsGo
1t1! (Where the Loot Is!)
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Power Tools for Power Solutions/ Strategies! TP
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Toms
Privacy11 1. Itll only get worse. 2. Be a
leader, not a follower. (J J and safety GE and
Global Warming) 3. Offense beats
defense. 4. Be a Visible Leader/Industry
Spokesperson. 5. Create a super-cool Advisory
Board. 6. Make privacy a core value. 7. This
is a strategic positioning issue, not a legal
issue. 8. Customer-centric is
Privacy-centric. (Period!) 9. Turn problem
into product. (3M and OSHA) 10. Can you segment
privacy? (I care 13-year olds dont.)
(Women gt Men???) (11. Once youre way ahead,
lobby for tough regs your competitors
cant meet!)
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4. Re-imagineUp, Up, Up, Up the Value-added
Ladder.
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And the M Stands for ?Gerstners IBM
Systems Integrator of choice. (BW) IBM Global
Services 55B
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Planetary Rainmaker-in-ChiefSam Palmisanos
strategy is to expand techs borders by pushing
usersand entire industriestoward radically
different business models. The payoff for IBM
would be access to an ocean of revenuePalmisano
estimates it at 500 billion a yearthat
technology companies have never been able to
touch. Fortune/06.14.04
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5. Re-imagine Enterprise as Theater The Cirque
du Soleil Aspiration! (Nothing Less!)
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Experiences are as distinct from services as
services are from goods.Joseph Pine James
Gilmore, The Experience Economy Work Is Theatre
Every Business a Stage
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The Experience LadderExperiences
ServicesGoods Raw Materials
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The Experience Ladder/TPExperiences
Solutions/SuccessServicesGoods Raw Materials
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Sales per Square Foot/GroceryAlbertsons
384WalMart 415Whole Foods 798
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Experience Rebel Lifestyle!What we sell is
the ability for a 43-year-old accountant to dress
in black leather, ride through small towns and
have people be afraid of him.Harley exec,
quoted in Results-Based Leadership
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2/503Q04
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6. Re-imagine the Fundamental Selling
Proposition It all adds up to (THE
BRAND.) (THE STORY.)(THE DREAM.)The Love.
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We are in the twilight of a society based on
data. As information and intelligence become the
domain of computers, society will place more
value on the one human ability that cannot be
automated emotion. Imagination, myth, ritual -
the language of emotion - will affect everything
from our purchasing decisions to how we work with
others. Companies will thrive on the basis of
their stories and myths. Companies will need to
understand that their products are less important
than their stories.Rolf Jensen, Copenhagen
Institute for Future Studies
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Kevin Roberts Lovemarks!CEO/Saatchi
Saatchi
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When we were working through the essentials of a
Lovemark, Mystery was always at the top of the
list. Lovemarks The Future Beyond Brands,
Kevin Roberts
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MysteryMagic SensualityEnchantmentInt
imacyExplorationSource Kevin Roberts (e.g.
Apple/iMac/ Yum.)
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Lovemark Awesome ExperiencesSolutions/Success
ServicesGoodsRaw Materials
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New C-Levels
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CXOChief eXperience Officer
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CFOChief Festivals Officer
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CCOChief Conversations Officer
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CSOChief Seduction Officer
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CLOChief LoveMark Officer
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CPIChief Portal Impresario
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CWOChief WOW Officer
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CSTOChief StoryTelling Officer
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7. Re-imagine the Customer I Trends Worth
Trillion Women Roar. (Stop Being Such Damn
Fools I.)
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?????????Home Furnishings 94Vacations 92
(Adventure Travel 70/ 55B travel
equipment)Houses 91D.I.Y. (major home
projects) 80Consumer Electronics 51 (66
home computers) Cars 68 (90)All consumer
purchases 83 Bank Account 89Household
investment decisions 67Small business
loans/biz starts 70Health Care 80
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Thanks, Marti Barletta!
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The Perfect Answer
Jill and Jack buy slacks in black
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Women dont buy brands. They join them.
EVEolution The Eight Truths of Marketing to
Women/Faith Popcorn Lys Marigold
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1. Men and women are different.2. Very
different.3. VERY, VERY DIFFERENT.4. Women
Men have a-b-s-o-l-u-t-e-l-y nothing in
common.5. Women buy lotsa stuff.6. WOMEN BUY
A-L-L THE STUFF.7. Womens Market Opportunity
No. 1.8. Men are (STILL) in charge.9. MEN ARE
TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10.
Womens Market Opportunity No. 1.
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7A. Re-imagine the Customer II Trends Worth
Trillion Boomer Bonanza/ Godzilla Geezer.
(Stop Being Such Damn Fools II.)
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2000-2010 Stats18-44 -155 21(55-64
47)
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44-65 New Customer Majority 45 larger
than 18-43 60 larger by 2010Source Ageless
Marketing, David Wolfe Robert Snyder
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The New Customer Majority is the only adult
market with realistic prospects for significant
sales growth in dozens of product lines for
thousands of companies. David Wolfe Robert
Snyder, Ageless Marketing
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8. Re-imagine Leadership Free the Lunatic
Within!
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Lead the Action Faction!
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We have a strategic plan. Its called doing
things. Herb Kelleher
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A man approached JP Morgan, held up an envelope,
and said, Sir, in my hand I hold a guaranteed
formula for success, which I will gladly sell you
for 25,000.Sir, JP Morgan replied, I do
not know what is in the envelope, however if you
show me, and I like it, I give you my word as a
gentleman that I will pay you what you ask.The
man agreed to the terms, and handed over the
envelope. JP Morgan opened it, and extracted a
single sheet of paper. He gave it one look, a
mere glance, then handed the piece of paper back
to the gent.And paid him the agreed-upon
25,000.
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1. Every morning, write a list of the
things that need to be done that day.2. Do
them. Source Hugh MacLeod/tompeters.com
/NPR
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Dispense Enthusiasm!
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BZ I am a Dispenser of Enthusiasm!
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Nothing is so contagious as enthusiasm.
Samuel Taylor Coleridge
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You must be the change you wish to see in the
world.Gandhi
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To change minds effectively, leaders make
particular use of two tools the stories that
they tell and the lives that they lead.
Howard Gardner, Changing Minds
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Free the Lunatic Within!
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You cant behave in a calm, rational manner.
Youve got to be out there on the lunatic
fringe. Jack Welch
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Stay Hungry. Stay Foolish. Steve Jobs